Midway Gold Corp. Announces Private Placement of Up To Cdn$10.0 MM

VANCOUVER, BRITISH
COLUMBIA--(Marketwire - Oct. 13, 2009) –

NOT FOR DISTRIBUTION TO UNITED
STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Midway Gold Corp. (the
"Company") (TSX VENTURE:MDW)(NYSE Amex:MDW) is pleased to announce
that it has engaged a syndicate of agents led by National Bank Financial Inc.
and Dahlman Rose & Company, LLC (the "Agents") to proceed with a
brokered private placement offering consisting of Units (the "Units")
in the Company, for total gross proceeds of up to Cdn$10 million (the
"Offering"). Each Unit consists of one common share of the Company
("Common Share") plus one half of one Common Share purchase warrant
(each whole warrant, a "Warrant") and will be priced in the context
of the market. Each whole Warrant entitles the holder to purchase one
additional Common Share for a period of 24 months following the closing of the
Offering at an exercise price to be determined in the context of the market.

The Agents will receive aggregate
cash commission equal to 6% of the total proceeds raised excluding proceeds
raised from purchases by certain specified individuals ("Specified
Purchasers"). In addition, the Agents will be issued broker warrants
exercisable to acquire, in the aggregate, that number of Common Shares as is
equal to 6% of the aggregate number of Units issued pursuant to the Private
Placement excluding Units issued to Specified Purchasers. The Agents will also
be issued broker warrants exercisable to acquire, in the aggregate, that number
of Common Shares as is equal to 2% of the Units issued to Specified Purchasers
pursuant to the Private Placement. Each broker warrant will entitle the holder
thereof to acquire one Common Share at the same exercise price as the exercise
price of the Warrants for a period of 12 months following the closing date for
the Private Placement.

The closing of the Offering is
expected to occur on or about November 16, 2009 or such other date that Midway
and the Agents agree and is subject to certain conditions including, but not
limited to, the receipt of all necessary regulatory approvals, including the
approval of the TSX Venture Exchange and NYSE Amex. The Company has also agreed
to file a resale registration statement with the United States Securities and
Exchange Commission related to the Common Shares and the common shares
underlying the Warrants.

None of the securities have been
registered under the Securities Act of 1933, as amended (the "U.S. Securities
Act"), or any state securities law, and may not be offered or sold unless
registered or exempt from such registration requirements. This press release
does not constitute an offer or sale of securities.

Proceeds of the private placement
will be used to fund ongoing exploration and development programs at Midway's
gold projects in Nevada and Washington and for general corporate purposes.

About Midway Gold Corp.

Midway Gold Corp. is a precious
metals exploration company that engages in the acquisition, exploration, and
development of mineral properties in the western United States. Midway controls
over 65 square miles of mineral rights along three major gold trends in Nevada
and the Republic district of Washington. Midway has four advanced exploration
projects including the Spring Valley, Pan, Golden Eagle, and the Midway
projects, and three earlier stage exploration targets. These early stage
exploration projects include Gold Rock, Roberts Gold and Burnt Canyon.

Forward Looking Statements:

Some statements in this news release contain forward-looking
information. These statements include, but are not limited to, statements with
respect to future exploration, development and production activities, future
studies and reports, and future expenditures. These statements address future
events and conditions and, as such, involve known and unknown risks,
uncertainties and other factors which may cause the actual results, performance
or achievements to be materially different from any future results, performance
or achievements expressed or implied by the statements. Such factors include,
among others, the use of proceeds, the timing and success of future
exploration, development and production activities the timing and completion of
future reports and studies, and the timing and amount of expenditures

Neither the TSX Venture Exchange nor its regulation services provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.